Bill S6811A-2011

Amends chapter 585 of 2011 authorizing the village of Ilion to finance a litigation settlement by the issuance of serial bonds and/or anticipation notes

Authorizes the village of Ilion to finance a litigation settlement by the issuance of serial bonds and/or anticipation notes, in relation to the requirements of issuing and levying taxes on such bonds and notes.

Memo

BILL NUMBER:S6811A

TITLE OF BILL: An act to amend chapter 585 of the laws of 2011 relating to authorizing the village of Ilion to finance a litigation settlement by the issuance of serial bonds and/or anticipation notes, in relation to the requirements of issuing and levying taxes on such bonds and notes

PURPOSE: To amend chapter 585 of the laws of 2011 to delete a reference to the local finance law.

SUMMARY OF PROVISIONS: This is an amendment to S.5657, to delete references to an inappropriate section of the local finance law and to grant the municipality additional time to issue its notes or bonds.

EXISTING LAW: Chapter 585 was signed into law on September 23, 2011. It inadvertently and incorrectly references section 10.10 of the local finance law.

JUSTIFICATION: The section of the local finance law referred to in the chapter permits a municipality to incur debt to liquidate an operating deficit, and requires the comptroller to certify the amount of the municipality's deficit. It further requires quarterly budget reporting by the municipality to the division of budget, the comptroller, and the chairmen of the legislature's respective finance committees - clearly not the intent of the legislation. This amendment corrects the error and grants the municipality additional time to issue its notes.

LEGISLATIVE HISTORY: Senate bill 5657 was signed into law as chapter 585 of the laws of 2011. This bill amends the chapter.

FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: Immediate.

Text

STATE OF NEW YORK
________________________________________________________________________
6811--A
Cal. No. 558
IN SENATE
March 23, 2012
___________

Introduced by Sen. SEWARD -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government --
reported favorably from said committee, ordered to first and second
report, ordered to a third reading, passed by Senate and delivered to
the Assembly, recalled, vote reconsidered, restored to third reading,
amended and ordered reprinted, retaining its place in the order of
third reading
AN ACT to amend chapter 585 of the laws of 2011 relating to authorizing
the village of Ilion to finance a litigation settlement by the issu-
ance of serial bonds and/or anticipation notes, in relation to the
requirements of issuing and levying taxes on such bonds and notes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1 of chapter 585 of the laws of 2011 relating to
authorizing the village of Ilion to finance a litigation settlement by
the issuance of serial bonds and/or anticipation notes, is amended to
read as follows:
Section 1. The Village of Ilion, in the county of Herkimer, is hereby
authorized to issue serial bonds[, subject to the provisions of section
10.10 of the local finance law,] on or before [June 30, 2012] JANUARY
31, 2013, in an aggregate principal amount not to exceed one million one
hundred thousand dollars ($1,100,000) for the specific [object] OBJECTS
or [purpose] PURPOSES of (I) settling pending litigation regarding
amounts owed to the county for workers' compensation costs, AND (II)
REFUNDING AN OUTSTANDING BOND OF THE VILLAGE IN THE PRINCIPAL AMOUNT OF
$1,167,400, ISSUED ON APRIL 5, 2012, AND BEARING INTEREST AT THE RATE OF
1.75% PER ANNUM (THE "OUTSTANDING BOND"). In anticipation of the issu-
ance and sale of such serial bonds, bond anticipation notes are hereby
authorized to be issued.
S 2. Section 3 of chapter 585 of the laws of 2011 relating to author-
izing the village of Ilion to finance a litigation settlement by the
issuance of serial bonds and/or anticipation notes, is amended to read
as follows:

EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15156-05-2

S. 6811--A 2

S 3. Notwithstanding the provisions of any other law, general, special
or local TO THE CONTRARY, INCLUDING PARAGRAPH C OF SECTION 90.00 OF THE
LOCAL FINANCE LAW, (I) THE OUTSTANDING BOND MAY BE REFUNDED (A) WITHIN
FIVE YEARS AFTER THE DATE OF ITS ORIGINAL ISSUANCE AND (B) WHERE THE
PRESENT VALUE OF THE REFUNDING BOND IS NOT LESS THAN THE PRESENT VALUE
OF THE OUTSTANDING BONDS, AND (II), the Village Board of the Village of
Ilion is hereby authorized to levy a tax [to be collected in annual
installments] sufficient to pay the principal of and interest on said
bonds and bond anticipation notes and to adopt a bond resolution author-
izing the serial bonds authorized to be issued pursuant to this act.
S 3. If any clause, sentence, subdivision, paragraph, section or part
of this act be adjudged by any court of competent jurisdiction to be
invalid, such judgment shall not affect, impair or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, subdivision, paragraph, section or part thereof directly
involved in the controversy in which such judgment shall have been
rendered.
S 4. This act shall take effect immediately.

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